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Total Cost Analysis Total Cost AnalysisOne of the most difficult aspects of deciding which lender or loan program is in trying to do a side by side comparison of the different offers and loan programs. I have invested in some software which allows me to create a side by side comparison of up to 4 loan programs. The software provides several sections to analyze the different programs. The Summary Section to determine which program offers the lowest payment which may actually not be the best choice in your specific situation. The Total Cost Analysis section looks at the total costs of obtaining and paying for the loan. We can analyze the data for any period of time. The section will break out the interest paid, remaining balance, and closing costs for each loan. The Term Reduction Section can be a very powerful tool. The premise is that by making an additional payment to the principal, your mortgage is paid off years earlier, saving you literally tens of thousands of dollars in interest. In the illustration, I set it up to make the reduction the same amount as the savings compared to the benchmark loan. I think you will be very surprised at the savings associated with a term reduction. The Monthly Tax Benefit Section will compare the monthly tax benefits of each loan based on your individual tax bracket. Here is a copy of the Total Cost Analysis If you would like to have me create an analysis for your specific situation I will need some specific information from you.
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